Growth of Immersive Media- 2019 - Datamatics

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Growth of Immersive Media- 2019 - Datamatics
Growth of Immersive Media - A Reality Check |

Growth of
Immersive
Media-
A Reality Check

                                                2019
                                                  1
Growth of Immersive Media- 2019 - Datamatics
Growth of Immersive Media - A Reality Check | Table of Contents

                          Table of Contents

                            1. Report Introduction & Methodology   3

                            2. Executive Summary                   4

                            3. Overview & Evolution                6

                            4. Immersive Media Ecosystem           10

                            5. Global Market Analysis              16

                            6. Applications & Use Cases            21

                            7. Emerging Technology Innovations     31

                            8. The India Story                     35

                            9. Recommendations                     51

                            Profiles of Key Players                55

                            Appendix – Additional Case Studies     65

                            Acknowledgements                       71

                            Glossary of Terms                      72

                            About Nasscom                          73

                            Disclaimer                             74

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Growth of Immersive Media- 2019 - Datamatics
Growth of Immersive Media - A Reality Check | Table of Contents

                                                                  2
Growth of Immersive Media- 2019 - Datamatics
Growth of Immersive Media - A Reality Check | Report Introduction & Methodology

                                                                Report Introduction
                                                      1         & Methodology

                                                                Background, Scope and
                                                                Objective
                                                                • This report aims to provide an assessment of
                                                                  the current market for Immersive Media both
                                                                  globally and in India.
                                                                • This report provides a summary view of the
                                                                  following with respect to Immersive Media:
                                                                  Brief Introduction & its Evolution, Ecosystem
                                                                  Players, Market Size and Growth Estimates,
                                                                  Key Applications and Use Cases, Analysis
                                                                  of the Indian Market, Key demand drivers,
                                                                  Factors limiting growth, along with the key
                                                                  recommendations that may propel the growth
                                                                  of the Immersive Media market in India.

                                                                Details of Research Tools and
                                                                Methodology
                                                                • We conducted Primary and Secondary
                                                                  Research for our market analysis. Secondary
                                                                  research formed the initial phase of our study,
                                                                  where we conducted data mining, referring
                                                                  to verified data sources such as independent
                                                                  studies, technical journals, trade magazines,
                                                                  and paid data sources.
                                                                • As part of the Primary Research, we performed
                                                                  in-depth interviews with stakeholders from
                                                                  throughout the Immersive Media ecosystem
                                                                  to gain insights on market trends, demand
                                                                  & supply side drivers, regulatory scenarios,
                                                                  major technological trends, opportunities &
                                                                  challenges for future state analysis.
                                                                • Stakeholders from the ecosystem included
                                                                  industry bodies, hardware OEMs, platform
                                                                  developers, system integrators, application
                                                                  developers, content developers, consumer
                                                                  enterprises and Global experts.

                                                                                                                3
Growth of Immersive Media- 2019 - Datamatics
Growth of Immersive Media - A Reality Check | Executive Summary

                                           2           Executive Summary

                                            • Immersive Media is defined as the media output with the ability to
                                              experience standard media in a multi-dimensional realm achieved by
                                              combining reality with technology. With the evolution of technology it
Introduction                                  has become possible to combine three dimensions of human sensory
                                              capabilities i.e. Sound, Sight & Haptic Feedback to create an immersive
& Evolution                                   experience.
                                            • Technologies that propagate immersive media to users include Augmented
                                              Reality (AR), Virtual Reality (VR), Mixed Reality (MR) and 3600 Video.
                                            • Immersive Media supply side ecosystem comprises five key categories
                                              of players: Hardware, Technology & Platform Developers, Application
                                              Developers, Content Producers, and System Integrators.
                                            • The evolution of Immersive Media has been in progress for over 50 years,
                                              but has picked pace only in the last decade, especially with evolution in
                                              hardware devices and growth of technology & platform development.

• The Global Immersive Media market is estimated at USD 18.4 Bn in 2018 and
  is projected to grow at 76% CAGR to reach USD 179 Bn by 2022.
• Currently, USA is the leading market with as much as ~1/3rd market share
  of the Global Immersive Media market. By 2022, while US is estimated to
  continue to garner 1/3rd share of Immersive Media spending; China, Japan,
  Germany and UK are projected to emerge as markets with significant
  Immersive Media spending.                                                               Global Market
• The industry has captured significant interest of investors over the last few
  years - Globally Immersive Media industry has attracted over USD 7.5 Bn
                                                                                         Size, Growth &
  funding during 2013-17.                                                               Key Applications
• Enhancing experiences related to ‘Connect’, ‘Know’, ‘Learn’, ‘Explore’ and
  ‘Play’ are the key applications of Immersive Media.
• As per 2017 estimates, Enterprise contributes to 2/3rds of the Immersive Media
  Spending, while Consumer spending contributes to the remaining 1/3rd.
• Automobile, Heavy Industries, Real Estate and Training are the key enterprise
  verticals driving the Immersive Media market.
• Camera & Image Capture (Multi-Lens Camera, 3D Sensing Camera, Smart
  Contact Lens), ‘Mapping & Environment’ (Simultaneous Location & Mapping),
  and ‘Display’ technologies (AMOLED-based Micro Display, High Angular
  Resolution FOV) are areas witnessing significant technology innovations, which
  is also aiding the growth of Immersive Media.

                                                                                                                    4
Growth of Immersive Media- 2019 - Datamatics
Growth of Immersive Media - A Reality Check | Executive Summary

                                              India Story
                                              • Immersive Media Market in India is estimated at USD 0.55
                                                Bn in 2018, but is expected to grow to USD ~6.5 Bn by 2022.
                                                Augmented Reality is estimated to grow to USD 5.9 Bn, while
                                                Virtual Reality is estimated to grow to USD 0.5 Bn by 2022
                                              • Real Estate, Media & Entertainment, Automotive and Retail
                                                are expected to be the verticals with maximum adoption of
                                                Immersive Media
                                              • Indian AR-VR supply landscape comprises of significant
                                                large and small players in the areas of ‘Tech & Platform
                                                Development’, ‘App Development’ and ‘System Integration’
                                                – both the domestic and the global Immersive Media market
                                                provides a significant opportunity for these players to tap into
                                              • Partnerships and collaborations are expected to be the
                                                key drivers of the ecosystem in India, with majors such as
                                                Facebook, Snapchat, Niantic forging relationships with Indian
                                                firms

                                              Key Growth Challenges
                                              • Prohibitive costs of AR and VR devices in India is acting as
                                                a deterrent to adoption across Consumer, Retail & Small &
                                                Medium Enterprise market segments
                                              • Availability of relevant content due to diverse requirements and
                                                technology limitations is a significant challenge for immersive
                                                media growth
                                              • Awareness about Immersive Media value proposition and return
                                                on investment lacking in quantitative and qualitative view

                                              Recommendations
                                              In addition to the growing domestic demand, India has the
                                              potential to emerge as a large supplier of the global AR-VR
                                              demand leveraging its stronghold in technical capabilities across
                                              engineering, app development and content creation. Some
                                              measures which may accelerate this growth are:
                                              • The Indian Government plays a dual-role to enhance growth of
                                                Immersive Media in India – 1. Act as a consumer, and 2. Act as
                                                an Enabler/Catalyst. Initiatives to ensure affordability of devices
                                                through Government support and programs may be considered
                                              • AR-VR players improve availability of skilled and competent
                                                talent leveraging both formal and vocational education
                                                ecosystem
                                              • AR-VR players improve focus on creation of customized content
                                                in order to appeal to larger masses across age groups, cultures,
                                                regions and other demographics and for businesses

                                                                                                                   5
Growth of Immersive Media - A Reality Check | Overview & Evolution

     3         Overview & Evolution

              Immersive Media is transforming the way
              users experience reality. This section
              provides an understanding of Immersive
              Media and its evolution over the years

                         Immersion is a combination of Visual, Sound and Haptic

            1            feedback, which in turn is experienced only through Augmented
                         Reality, Virtual Reality, Mixed Reality and 3600 Video – known
                         commonly as Immersive Media

           2             The Immersive Media industry has been in a nascent form for
                         the last 50 years, and has started growing in the last decade

           3
                         Applications of Immersive Media have increased significantly
                         for Enterprise as well as Consumers across sectors such as
                         Automobile, Retail, Real Estate, Education etc

           4
                         Key Drivers for the growth of Immersive Media are incremental
                         quality of the content available, enhanced connectivity and
                         superior device capabilities

           5
                         Immersive Media is no longer about an alternative display
                         technology but is being looked at as a transformative way to
                         consume content

                                                                                          6
Growth of Immersive Media - A Reality Check | Overview & Evolution

3.1 | An Introduction to Immersive Media
Immersion, as a concept is the unity between three specific dimensions of human experience capabilities.
Sound, Sight and Intuitive Interactions form the three pillars. These operate independently of each other to create
experiences on their own, but a truly immersive experience is created when the three come together to form one
unified experience.

                                                                                    Silent Motion
                               Pictures
                                                                                     Videos
                                                          Visual

                                             Movies                 Games &
                                                                      Apps
           High Resolution                               Truly                                 Motion
                   Audio                              Immersive                                 Sensing
                                                      Experience

                                                        3D Audio           Intuitive
                  Songs &           Sound
                                     Sound                                                       Haptic
                   Speech                                                Movements &           Feedback
                                                                          Feedback

                                          Figure 1: Dimensions of Immersive Media

Immersive Media is defined as the ability to experience standard media in a multi-dimensional realm combining
reality with technology. Technologies that propagate immersive media to the users include Augmented Reality (AR),
Virtual Reality (VR), Mixed Reality (MR) and 3600 Video as illustrated in Figure 2.

          Mixed Reality                                                                       Augmented Reality
A Blend of Digital Content                                                                    A Digital Content
       into the Real-World                                                                    Overlay
   which is an environment                                                                    into the user’s real-world
    where both coexist and                                                                    environment
                    interact

                                                      Immersive
                                                    A Multisensory,
                                                  Digital Experience
                                                   which is delivered
                                                 through any of these
                                                     technologies

              3600 Video
                                                                                              Virtual Reality
                A Change in
       Perspective Offered                                                                    A Digital Environment
        that allows users to                                                                  that replaces the user’s
     look in every direction                                                                  real-world environment
                                          Figure 2: Components of Immersive Media

                                                                                                                           7
Growth of Immersive Media - A Reality Check | Overview & Evolution

3.2 | Evolution of Immersive Media
The evolution of Immersive Media has been in progress for over 50 years, with Augmented Reality coming into
existence in the year 1968. The term Augmented Reality came into existence only in 1990 and emergence of
applications across Engineering, Media & Entertainment and uses in Industry have driven evolution of the technology
as well as the ecosystem. With significant advancements in computing and display technologies, AR VR and MR
applications will find greater number of applications with shortened product develoment cycles.

         World’s first ever head-mounted display
             system developed. Credited to Ivan
         Sutherland, displayed simple wireframe                     1968-
           designs from computers. World’s first                    1974
                       artificial reality lab created

                                                                                                    Augmented Reality
                                                               1990                                 coined by Boeing
                                                                                                    Engineer, Tom
                                                                                                    Claudell
       One of first AR systems – Virtual
      Fixtures developed – as a military
         application. Upper body fittings
              let the military control the                           1992
      machines from a remote location

                                                                                                First Virtual Yellow
                                                                                                Down Market broadcast
                                                               1998                             by Sportvision in a NFL
                                                                                                Game

         NASA X-38 Spacecraft flown using
        Hybrid Synthetic Vision using Visual
                      Overlay on structures                          1999
     Augmented reality system for soldiers
      on battlefield under development by                                             ’00: Hirokazu Kato created ARToolkit
                                  US Navy                                             (Open Source Library) – Still widely
                                                                                      used
                                                               2000-                  ’03: NFL: 1st and Ten line integrated
                                                               2019                   with Skycam used
     ’10: First VR Headset Prototype created                                          ’09: ARTookit brings Augmented
                                                                                      Reality to web browsers
          ’13: Car Manufaturers begin use of
         AR as service manuals (Volkswagen                          2010-
                                    MARTA)                          2014
      ’14: Google announces Google Glass –
                             Wearable AR                                                  ’15: AR & VR Investments reach
                                                                                          USD 700 Mn.
                                                               2015-
                                                                                          ’16: AR & VR Investments touch
                                                               2016                       USD 1.1 Bn.; Microsoft launched
                                                                                          Hololens

                                             Figure 3: Evolution of Immersive Media

As depicted in Figure 3, the ecosystem of Immersive Media has evolved from simply being an alternative display
technology to being a potential multi-sensory experience providing technology (Sound, Sight, Haptics etc.). It is
currently being viewed as one of the drivers of the future of computing, entertainment and business as well.
The ecosystem is moving towards higher quality content created through advanced tools, platforms, devices as well
as integration of multiple skills.

                                                                                                                              8
Growth of Immersive Media - A Reality Check | Overview & Evolution

                                                                     Key trends expected in the
                                                                     evolution of the ecosystem are
                                                                     as follows:

                                                                     With increasing investment in R&D by
                                                                     various players, current device limitations
                                                                     will be overcome leading the way for better
                                                                     and first improved devices.

                                                                     With technological advancement form
                                                                     factor of AR VR devices will further improve
                                                                     thus allowing seamless integration in daily
                                                                     lives across various use cases

                                                                     The application ecosystem will get strong
                                                                     with focus on creation of applications and
                                                                     customized content. These developments
                                                                     will find multiple use cases across sectors
                                                                     e.g. Capital Goods, Heavy Manufacturing,
                                                                     Hospitality, Retail, Media & Advertising and
                                                                     Healthcare

                                                                                                              9
Growth of Immersive Media - A Reality Check | Immersive Media Ecosystem

     4          Immersive Media Ecosystem

              The Immersive Media Ecosystem consists
              of various players with unique roles to play
              in the value chain.

            1
                        The immersive media ecosystem is made up of six key players - Hardware
                        Producers, Technology & Platform Developers, Application Developers,
                        Content Producers, System Integrators and Users

           2
                        Hardware plays a significantly large role in the immersive media ecosystem,
                        with hardware manufacturers increasing their focus on ergonomics, creation of
                        untethered devices and potentially adding multi-sensory capabilities

           3
                        Evolution of platforms and tools led by OS Developers such as Apple (ARKit
                        2) and Google (ARCore) have led to the mass availability of applications on
                        both OS-powered smartphones leading to further proliferation of AR

           4
                        Highly advanced hardware management protocols built into Software
                        Development Kits (SDKs) has allowed focus to shift to UI & UX from the
                        traditional performance management of smart devices

           5
                        With increasing involvement of various data sources to create immersion
                        experiences, there is an increased complexity for immersive solutions.
                        Hence system integrators have a significant role to play in the future

                                                                                                        10
Growth of Immersive Media - A Reality Check | Immersive Media Ecosystem

4.1 | Immersive Media Ecosystem
The Immersive Media ecosystem is composed of 6-Key Players – Hardware Producers, Technology & Platform
Developers, Application Developers, Content Producers, System Integrators and Users. Other than these, the
Government in the form of Regulators and Policy Formulators play a critical role in the growth of the Immersive
Media adoption in any country.

4.2 | Immersive Media Value Chain

                          Toolkits and
                          Platforms to
                          take vision to
                          reality varying by                                   Studios,
 Devices required                                    Applications
                          technology                                           Organisations
 to consume                                          are platforms
                                                                               and Individuals
 Immersive Media          Used as a base to          for rendering
                                                                               producing/
                          create Immersive           immersive
 Technology varies                                                             owning content
                          Experiences                content to users
 by application                                                                for Immersive
                          through
                                                     Larger number             Experiences
 • AR: Hand-              Computing
                                                     of Developers                                     End-consumers of
   held Devices,          Applications                                         Content
                                                     developing                                        Immersive Media
   Head Mounted                                                                developers/
                          • AR: Apple’s              applications
   Devices (HMD),                                                              owners span             Users are
                            ARKit2,                  and features for
   Heads-up                                                                    areas such as           generally owners
                            Google’s                 consumption of
   Display (HUD)                                                               Media, Gaming,          of devices
                            ARCore2,                 Immersive Media
                                                                               Advertising etc.        and span the
 • VR: HMD                  Amazon’s
                                                     e.g. Niantic,                                     business and
                            Sumerian;                                          e.g. JauntXR,
 • MR: HMD                                           Snapchat,                                         consumer sectors
                                                                               Rewind, Visualise,
                          • VR:Unity3D               Facebook,
                                                                               IKEA, L’Oreal
                                                     Cubicle Ninjas

    Hardware                                                                                                Users
                        Tech. & Platform                                          Content
                          Developers                  Application                Producers
                                                      Developers

                                               System Integrators (SI)
Used in extensive projects and        Capabilities are centered around          Internal Capabilities may extend to all
launches, SI players span across      developing and deploying                  ecosystem players, or they may collaborate
the Develop-to-Deploy ecosystem       complex solutions for their clients       to deliver end-solution to buyer

                                          Figure 3: Value Chain of Immersive Media

                                                                                                                       11
Growth of Immersive Media - A Reality Check | Immersive Media Ecosystem

   Hardware
            Physical devices that are used                      Devices vary by type of Immersive Media e.g.
            to consume content across the                       Augmented Reality is consumed on Smartphones,
            Immersive Media spectrum                            HMD etc., while VR is consumed through VR- HMD only

Evolution & Trends

                                                                                    Launch of Apple
                                                       Release of                     iPhone 8 and
                    AR in Web                          Multiple AR                 iPhone X specially
                    Browsers                         HMD/HUD (E.g.                  designed to cater
                     possible                         Google Glass)                to AR Experiences

     2000                            2010                               2016                                2018

                     2008                               2014                               2017

   AR Toolkit                   First Prototype of                    Commercial                       Standalone VR
  released for                  VR Headset (read                       Launch of                       HMDs launched
development on                   Oculus) created                       Microsoft                        – Oculus Rift;
Personal Devices                                                       HoloLens                         MR Headset –
                                                                                                       MagicLeap One

    Focus on Standalone/        Hardware ergonomics           Smartphone VR to take         Multi-sensory beyond
     Untethered devices              to improve                lead in VR adoption           Sight and Sound

Impact on Growth of Immersive Media

Hardware advances       Virtual reality has seen a              Mixed reality has                 3600 Cameras are
in Handheld Smart       positive shift with hardware            become a possibility              improving in form
Devices have led        ecosystem players producing             with Microsoft’s launch           factor, resolution and
to potential for        devices with smartphone-based           of Hololens, and Google-          data transmission to
mass-adoption of        inserts, along with the more            backed MagicLeap                  ensure high quality
Augmented Reality       expensive tethered devices              launching devices                 image capture

                                                                                                                     12
Growth of Immersive Media - A Reality Check | Immersive Media Ecosystem

    Tech. & Platform Developers
          Developers who create tools and                             Platforms today have been developed by
          platforms for the creation of immersive                     both Mobile OS developers, as well as
          media applications and content                              stand-alone tool developers

Evolution & Trends

                        Unity3D Game                                   Amazon Sumerian
                       Engine Launched                                 Available to Public

            2000                            2011             2018                               2018

                              2005                                          2018

         AR Toolkit                    Total Immersion      Google                           Apple releases
        released for                  Launches D’Fusion    Launches                             ARKit2
      development on                   Free Platform for    ARCore
      Personal Devices                    AR Gaming

         Launch of Major SDKs by Apple & Google              Focus shifting to UX from back-end performance

Impact on Growth of Immersive Media

Developers creating                   Large investment          As SDKs are integrated to the device, uniquely
toolkits and platforms                driving SDK               built by the OS developer with advanced hardware
have played a significant             enhancents                performance management inbuilt, the larger focus
role in driving mainstream            leading to better         is now on User Interface and User Experience and
adoption of Augmented                 quality which will        not device performance management such as
Reality and Virtual Reality           drive adoption            Battery life, Processor Use etc.

                                                                                                               13
Growth of Immersive Media - A Reality Check | Immersive Media Ecosystem

     Application Developers

          Developer Ecosystem that creates applications for Smart Devices, Computers,
          Consoles and other devices for rendering an immersive experience based on
          the technology of choice – AR, VR, MR, or 3600 Video

Evolution & Trends

No. of Companies Founded                  Total Funding (USD Mn.)
(2013-2018*)                              (2013-2018*)
                     753
                                                              798                 Applications of AR to grow
                                                                                faster due to non-requirement
                                                                                    of additional hardware
    528
                                              483                                 Immersive applications to
                                                                                  grow beyond Gaming, Real
                                                                                 Estate, Media & Advertising,
                                                                                         Social Media

                                                                                 Enterprise Sectors will begin
                                                                                    development of highly
                                                                                 specialized immersive apps
     AR               VR                       AR             VR

Impact on Growth of Immersive Media
       Applications for Immersive Media                  Social Media organizations such as Snap Inc. (Snapchat)
       have been centered around                         and Facebook’s recent strides in AR and VR to render
       Gaming, Real Estate, Media &                      content for consumption and sharing have led to
       Advertising and Social Media                      exponential growth in the number of consumers

*:July 2018 Source: Traxcn                                                                                       14
Growth of Immersive Media - A Reality Check | Immersive Media Ecosystem

   Content Developers

       Producers of content that is consumed                            Content can be in the form of Video, Audio,
       by the end-user across the Enterprise                            Graphics, Animations, Images etc. and can
       and Consumer ecosystems                                          transcend any of the immersive technologies

Trends

     Content studios focusing             Media & Entertainment sector               Virtual Presence for
     on developing content for             showing most potential for              Enterprises, Training &
           MR and VR                       content consumption in VR             Employee Development on VR

Impact on Growth of Immersive Media
          Growth of quality                    Increasing adoption                 Content Producers and Owners
          content with greater                 of VR in Media &                    are delivering various applications
          contextualization has                Entertainment will                  across Gaming, Retail, Education,
          led to the growth of                 enable its larger role              Learning, Social Media etc.
          Immersive Media                      in Film & Broadcasting              leading to a larger uptake

   System Integrators

         Responsible for delivering and                          Capabilities span Content Development, Application
         rolling out complex solutions                           Development and Technology Integrations

Trends

        Augmenting                  Working closely with Device            Increasing investments in acquisition
       capabilities in             Manufacturers carrying design           of tools and technologies to enhance
    Content Development           feedback from Enterprise Clients              overall delivery capabilities

Impact on Growth of Immersive Media

         Enterprise interest in Immersive Media has                        Developing internal capabilities
         increased in the last 5-7 years, with System                      across multiple functional areas
         Integrators designing and deploying these                         has led to the growth of reliance
         complex solutions for large corporations                          on the System Integrators

                                                                                                                   15
Growth of Immersive Media - A Reality Check | Global Market Analysis

     5           Global Market Analysis

               Immersive Media globally has witnessed
               low adoption, but is on the cusp of growth
               - estimated to grow at 76% (CAGR) over
               the next 5 years

             1           The Global Immersive Media market is estimated at USD 18.4 Bn in 2018
                         and is projected to grow at 76% CAGR to reach USD 179 Bn by 2022

                         Currently, USA is the leading market with as much as ~1/3rd market share

           2
                         of the Global Immersive Media market. By 2022, while US is estimated to
                         continue to garner 1/3rd share of Immersive Media spending; China, Japan,
                         Germany and UK are projected to emerge as markets with significant
                         Immersive Media spending

           3
                         The industry has captured significant interest of investors over the last few
                         years - Globally Immersive Media industry has attracted over USD 7.5 Bn
                         funding during 2013-17

                         As per 2017 estimates, Enterprise contributes to 2/3rds of the Immersive

           4             Media Spending, while Consumer spending contributes to the remaining
                         1/3rd, with Automobile, Heavy Industries, Real Estate and Training are the
                         key enterprise verticals driving the Immersive Media market

           5
                         Camera & Image Capture, Mapping & Environment, and Display
                         technologies are areas witnessing significant technology innovations,
                         which is also aiding the growth of Immersive Media

                                                                                                         16
Growth of Immersive Media - A Reality Check | Global Market Analysis

5.1 | Global AR & VR Spending Estimates

Global AR & VR Spending Estimates – 2015-22 (USD Bn.)3
                                                                                                                                                     178.9
                                                                                                                                                     17.8

                                    2015-2017       2017-2022

      Global CAGR
                                                                                                        %
                                                                                                     76
  g Augmented Reality                 155%               84%                                                                      102
                                                                                                                                  12.5
  g Virtual Reality                      48%             44%
                                                                                                                                                 161.1
  c AR + VR                           105%               76%
                                                                                                            57.9
                                                                                                            8.8
                                                                                                                                  89.4
                                                                                     32.7
                                                                               6.1
                            105%                                        18.4                                49.2
      1.3                     2.0 5.9           2.9 10.4          4.2
                                                                        14.2         26.6
      1.2 2.5                 4.0               7.6
           2.5                     5.9              10.4
                                                     2.5             18.4             32.7
                                                                                       2.5               57.9                  102
                                                                                                                               2.5               178.9
          2015                    2016              2017            2018E            2019F              2020F                 2021F              2022F

                                                  Chart 1: Global AR and VR spending (2015-2022)

The global Immersive Media market has grown from USD 5.9 Bn in 2016 to USD 18.4 Bn in 2018 and is expected
to reach USD 178.9 Bn by 2022. Gaming, Media, Entertainment, Retail, Medical and Healthcare, Digital marketing,
Industry training and support are some of key Industries expected to drive the market

                 Immersive Media Market: Enterprise vs. Consumer,
5.2
                 Geographical split
As per 2017 estimates, Enterprise contributes to 2/3rds of the Immersive Media Spending, while Consumer spending
contributes to the remaining 1/3rd. Both Enterprise and Consumer spending are estimated to grow at a significant
pace (as shown in the Figure below) and the contribution percentage of the two segments is estimated to stay within
the same range.

Enterprise Market vs Consumer Market Growth for
Immersive Media4
Global Augmented Reality Market                                                Global Virtual Reality Market
(Consumer vs. Enterprise) (USD Bn.)                                            (Consumer vs. Enterprise) (USD Bn.)
                            2015-    2017-                                                                  2015-         2017-
                            2017     2022                                                                   2017          2022
  Global CAGR                                                                     Global CAGR
                                                                   41.1
g Enterprise                156%      85%                                       g Enterprise                47%           44%
                                                     %                                                                                   %              8.5
g Consumer                  155%      83%         84                            g Consumer                  48%           44%        44
  Ent. + Con.               155%      84%                                         Ent. + Con.               47%           44%
                                                                                                                                               6.0
                                                           23.0
                                                                   120.0                                                                 4.2
                                                  12.8                                                                       2.9                        9.3
                                                           66.4                            47%
      155%            5.6
                                          7.0
                                                                               0.6         0.9 1.0                  2.0                        6.6
0.9       2.9                      3.7                                                                  1.4                              4.6
                                               36.4                                  0.7                                     3.3
    0.3         1.1         2.0          19.7                                                                       2.2
                                   10.5                                                                 1.5
   2015     2016        2017      2018E 2019F 2020F 2021F 2022F                  2015        2016      2017        2018E 2019F 2020F 2021F 2022F

                                     Chart 2: Growth of Immersive Media - Enterprise vs. Consumer Segments

3,4 | Deloitte Analysis, BIS Research                                                                                                                        17
Growth of Immersive Media - A Reality Check | Global Market Analysis

Immersive Media Market Size & Growth across
Geographies – Select Markets5

 Country          Canada       USA            Latin           UK          France     Germany       ME &         India       China        Japan
                                             America                                               Africa
                  AR   VR    AR     VR       AR   VR    AR         VR    AR    VR    AR     VR    AR    VR    AR    VR    AR     VR    AR     VR
            in
         2017
 2015 - 2017

                 0.2   0.1   2.6    1.1     0.4   0.1   0.6        0.3   0.4   0.1   0.8    0.3   0.3   0.1   0.2   0.1   0.6    0.2   0.7    0.2
CAGR Size

                 168% 55% 159% 48% 139% 43% 157% 49% 153% 49% 148% 45% 136% 41% 172% 57% 170% 55% 165% 50%
            in
         2022
 2017 - 2022

                 6.1   0.7   59.3   6.6     5.4   0.6   0.2    12.5      8.1   0.9   15.7   3.5   0.4   0.1   6.0   0.6   15.6   1.6   17.7   1.6
CAGR Size

                 90% 49% 86% 44% 71% 39% 85% 45% 83% 45% 80% 43% 69% 37% 91% 57% 92% 50% 89% 45%

    Size is in USD Bn. (Also, for 2017-22 calculated with values from 2018-2022), CAGR in %

                                          Figure 5: Immersive Media Growth across Markets (Select Market)

Currently, USA is the leading market in terms of Immersive Media spending with ~1/3rd of the global market. By2022,
while US is estimated to continue to garner 1/3rd share of Immersive Media spending, China, Japan, Germany and UK
are projected to emerge as markets with significant AR-VR spending.

5 | Deloitte Analysis, BIS Research                                                                                                           18
Growth of Immersive Media - A Reality Check | Global Market Analysis

5.3 | Funding & Growth of Immersive Media Organizations
Augmented Reality and Virtual Reality have seen a sharp growth in the interest of entrepreneurs and investors
alike in the last 5 years. The large investments in Immersive Media across Augmented Reality and Virtual Reality
companies in the last 5 years are testament to the potential of Immersive Media to become the next wave of
technology in computing and entertainment.

Number of Companies Founded providing
Augmented Reality & Virtual Reality6

Augmented Reality                                                          Virtual Reality

                       127          133
                                                    125
                                                                                                       473     502
           93                                                    94
                                                                                               304

                                                                                                                          168
                                                                                 118

     2013            2014         2015            2016         2017            2013          2014    2015    2016      2017
  g Y-o-Y Augmented Reality Companies Founded                                   g Y-o-Y Virtual Reality Companies Founded

                                         Chart 3: Total Count of Companies Founded Y-o-Y (2013-17)

                Immersive Media Market: Enterprise vs. Consumer,
5.3.1
                Geographical split

Augmented Reality & Virtual Reality Funding7
Augmented Reality                                                              Virtual Reality
(Funding in USD Mn.)                                                           (Funding in USD Mn.)
                                                                                                              133
                                   54              54
                                                                50
                                                                                                      121            143 123
                      46

      36
20                                                896
                                                                                              60              142        897

                                   52                                                                 190
     677              11                                       520                                            420
                                                                          36                  12
                                                                                23                    255
                     272          265             232                                         130
19              27           18              21           16    77         9 191        55            55      71         77
     2013            2014         2015            2016         2017          2013            2014    2015    2016       2017

 c Late Stage                     g Early Stage                  g Seed               n Number of Rounds of Funding (Units)

                                         Chart 4: Funding Amounts & Total Funding Rounds (2013-17)

6,7 | Deloitte Analysis, Tracxn Technologies Private Limited                                                                   19
Growth of Immersive Media - A Reality Check | Global Market Analysis

Sub-Sector Funding Activity (2013-2018)8

Total Funding (in USD Mn.)                                                 Total Funding (in USD Mn.)

                                                                             Chips & Sensors             167
Interactivity Enablers          69
                                                                              Display Devices            191

  Development Tools                  374                                       Live Streaming            199

                                                                       Interactivity Enablers              281

           Applications               483                                               Studios            307

                                                        3000                       Applications                      798
      Display Medium                                                                                                            1500
                                                                     Content Creation Tools

           Chart 5: Sub-Sector Funding Activity in Augmented Reality (Left) and Virtual Reality (Right) (2013-YTD 2018)

Investment activity in the sub-sectors shows a difference in approach. While Development Tools seem to have
9.5% of the total investments in Augmented Reality, Tools for Content Creation have received about 43.5%
investments over the last 5 years. This speaks of the reduced dependence of investments in creating and making
better development platforms with the advent of SDKs from major device manufacturers. However, the increased
investment in Content Creation Tools for VR indicates the enhanced need to ensure high-quality content being
developed in order to continue to maintain interest, demand and supply of Immersive Experiences through Virtual
Reality.
The Geographical division between investments points to a large chunk of the funding being routed to the United
States. Other regions and countries such as Mainland Europe, China, Israel, Japan, India, and New Zealand etc. are
attracting investments as well.

Geographical Distribution of Investments in
Immersive Media9

             US                                                                       US
                                                         3300                                                                   2300
        Europe                               239                                Europe                                    841

          Israel                           211                                    Israel           179

New Zealand              41.5                                                      India     71.3

        Taiwan       25                                                  New Zealand        41.5

       Canada        23.6                                                      Canada       34.6

         Japan     8.2                                                            Japan    18.5

           India   5.1                                                        Australia    8.7

  Chart 6: Investments by Major Geographies - Augmented Reality (Left) and Virtual Reality (Right) in USD Mn. (2013-YTD 2018

8,9 | Deloitte Analysis, Tracxn Technologies Private Limited                                                                    20
Growth of Immersive Media - A Reality Check | Applications & Use Cases

     6             Applications & Use Cases

               Immersive media offers a multitude of
               use cases applicable across various
               industry verticals.

     6.1 | Application Categories of Immersive Media

                          Immersive
    Enhancing                                   Immersive media            Immersive ways         Entertainment
                         Experiences
  experience in                                   in Education,           of experiencing an         through
                          supporting
   connectivity                                  Learning & Skill         interest, purchase        Immersive
                       Knowledge- based
  applications                                    Development                 or location          technologies
                            Tasks

  Holo-Presence                                      Trainings            Immersive Mobility
                          Medicine &
                                                                                                   Live Events
                          Paramedical
  See-What-I-See                                Safety Compliances        Travel & Hospitality
                                                                                                   Storytelling
                       Manuals & Guides
   Do-What-I-Do                                     Certification             Augmented
                                                                               Catalogs              Gaming
                           Design &
 Remote Scribing          Architecture                Gaming
                                                                              Augmented           Location-based
                                                                               Shopping           Entertainment
      Social              Field Service        Behavioral Analytics
                                                                               Events &            3600 Video
  Field Services      Analytics & Big Data        3D Simulations              Conferences

                                                                          In-Store Experience

 Connectivity            Knowledge                 Education                 Exploration         Entertainment

                              Figure 6: Categories for Applications of Immersive Media

                                                                                                                   21
Growth of Immersive Media - A Reality Check | Applications & Use Cases

6.2 | Key Use Cases

                                                        The technology of creating an augmentation to the real-world
                                                        with a digital rendition of an individual in true depth 3D using
                                                       multiple projections is Holographic Presence (or Holo-Presence)

                                                                                               Potential Value
                                                                                                    Delivered
                                                            Impression of real-time interaction possible, giving further
                                                                comfort to consumer of the content, and can save on
                                                                logistical costs as well as mitigate resource crunch in
                                                                                   sectors such as Education, Arts etc.

                           Dimension                           Ongoing Deployments (Illustrative)
                           CONNECTIVITY
                           Application
                           HOLO-PRESENCE

Mixed Reality solutions have a myriad of applications in
the Maintenance, Repair and Overhaul sector, enabling
field services to higher efficiency, safety and quicker
turnaround

Potential Value
Delivered
With access to manuals and guides in multi-media form,
efficiency of the MRO operation potentially increases.
Lower costs, and higher efficiency can enable higher
profitability
                                                                                                   Dimension
Ongoing Deployments (Illustrative)                                                       CONNECTIVITY
                                                                                                  Application
                                                                                      FIELD SERVICES
                                                                                         (MIXED REALITY)

                                                                                                                   22
Growth of Immersive Media - A Reality Check | Applications & Use Cases

                                                            Architecture by virtue of its nature, is heavily dependent on the
                                                     ability to ensure that the end-user can see or visualize the concept of
                                                      the architect in his mind. Virtual reality can enable said visualisaton
                                                                    even before the actual design is ready in physical form

                                                                                                    Potential Value
                                                                                                         Delivered
                                                               Enabling utilization of space, model evolution and advanced
                                                               planning through visualisations instead of 3D models made
                                                                                            through Computer Aided Design

                            Dimension                              Ongoing Deployments (Illustrative)
                            KNOWLEDGE
                            Application
                            ARCHITECTURE

Immersive Intelligence is a collaborative fact-based
decision process for understanding complex systems and
data sets using immersive spaces

Potential Value
Delivered
In the experience of being ‘one with the data’, and to be
able to get a realistic visualization of the data, the users
are able to explore virtually limitless datasets, and take
action/decisions
                                                                                                       Dimension
Ongoing Deployments (Illustrative)                                                              KNOWLEDGE
                                                                                                      Application
                                                                                                IMMERSIVE
                                                                                             INTELLIGENCE

                                                                                                                        23
Growth of Immersive Media - A Reality Check | Applications & Use Cases

                                                        Use of Virtual Reality is expected to take center stage with the
                                                       enterprise and education sectors in Training and Development.
                                                        Simulation of real-time environments and presentation to the
                                                      end-user will help enable cost reduction and enhanced learning

                                                                                                Potential Value
                                                                                                     Delivered
                                                             Costs for trainings are lower as dependence on individuals
                                                                     conducting them, and costs for logistics are lower.
                                                             Immersive trainings are the closest to reality, and a robust
                                                                                        methodology to ensure learning

                                                                 Ongoing Deployments (Illustrative)
                          Dimension
                          EDUCATION
                          Application
                          TRAININGS

Leading Player in Industry Sector an immersive
interactive induction product for its new employees to
gain an overview of the company’s processes from ‘rig to
retail’, and across Business Groups

Potential Value
Delivered
Cost and Time savings in the range of 70-85% have been
observed with the onboarding procedure, with potential for
more engagement with employees during their entry into
the organsiation
                                                                                                    Dimension
Ongoing Deployments (Illustrative)                                                             EDUCATION
                                                                                                   Application
                                                                                           SIMULATIONS

                                                                                                                    24
Growth of Immersive Media - A Reality Check | Applications & Use Cases

                                                        Seat selections and potential choices for superior experiences
                                                       on the luxury airline were in standard desktop and smartphone
                                                           offerings which the airline wanted to transform to enhance
                                                                                                 customer satisfaction

                                                                                              Potential Value
                                                                                                   Delivered
                                                                 Satisfied and impressed customers, who have made
                                                                 informed choices leading to reduction in complaints,
                                                              expectation mismatch and overall increase in customer
                                                                                                          satisfaction
                          Dimension
                          EXPLORATION
                                                               Ongoing Deployments (Illustrative)
                          Application
                          TRAVEL &
                          HOSPITALITY

International Retail chain wanted to engage more
customers through their smartphones inside and outside
their physical flagship stores, and take that engagement
to the friends/connections of these customers

Potential Value
Delivered
Engagement with the customer and the customers social
media circle of influence stands to enhance revenue
streams by rising interest in the product

                                                                                                 Dimension
Ongoing Deployments (Illustrative)                                                      EXPLORATION
                                                                                                Application
                                                                                                    RETAIL

                                                                                                                 25
Growth of Immersive Media - A Reality Check | Applications & Use Cases

                                                         With 3600 Videos becoming increasingly less appealing, and
                                                       customers expecting a more immersive and interactive gaming
                                               experience, standard VR gaming in public spaces such as Malls, Hotels,
                                                      Theme Parks was becoming increasingly obsolete rather quickly

                                                                                               Potential Value
                                                                                                    Delivered
                                                               Implementation of VRCades for leading Cinema provider
                                                            in US, Canada, China led to 90% customer satisfaction and
                                                                75% week-over-week revenue increment in initial weeks

                        Dimension                              Ongoing Deployments (Illustrative)
                        ENTERTAINMENT
                        Application
                        LOCATION-BASED
                        ENTERTAINMENT

Whether Live Sports, Trade Shows, Product Launches or
any other live setting, enhanced engagement with the
audience is the ask of every participant organisation

Potential Value
Delivered
Higher engagement delivery with the potential to increase
sales customer footfall; Alternatively, higher engagement
with audience in high-tech/learning events such as
exhibitions etc.                                                                                  Dimension
                                                                                    ENTERTAINMENT
Ongoing Deployments (Illustrative)                                                               Application
                                                                                           AUGMENTED
                                                                                             REALITY IN
                                                                                           LIVE EVENTS

With significant high impact applications in the offing for Augmented Reality and Virtual Reality, providers from
across the globe are focusing on innovation to establish higher reasons for adoption. Backed by evolving technology,
Immersive Media offers practical solutions with real benefits, which will mature further in future.

                                                                                                                  26
Growth of Immersive Media - A Reality Check | Applications & Use Cases

6.3 | Key markets for Immersive Media content and Services
Content/applications developed are expected to grow further and form the core of the market in the subsequent years.
The below mentioned are the key industries expected to witness the highest level of adoption of Immersive Media
globally

6.3.1 | Gaming Industry
The global gaming market is estimated at USD 137.9 Bn in 2018, with 2.3 Bn gamers worldwide. The mobile gaming
market is alone estimated at USD 70.3 Bn, witnessing a growth of 25.5% year-on-year. The market is expected to
reach USD 180.1 Bn by 2021, driven partly by the strong growth expected in VR games market. A record USD 2 Bn was
invested in 2017 in the gaming industry, with majority of the investment going into AR/VR game development.
For VR games alone, the market is forecasted at USD 5.08 Bn by 2017 and USD 39.47 Bn by 2021. By type of
hardware, console games is expected to take the major share, but significant growth is expected in mobile and arcade
game VR titles.

Chart 8: Global VR Gaming Market (in USD Mn.)
                                                                                                       35.0

                                                                                      23.4

                                                                   14.9
                                                 9.0
                              5.1
            2.7

           2016              2017               2018E             2019E             2020F              2021F

                                       Chart 7: Global VR Gaming Market (USD Mn.)

Immersive Media can play a large role in the overall improvement of experience and growth of the sector in the
following highlighted areas:

                                      Connectivity      Knowledge         Education      Exploration     Entertainment
         Gaming

6.3.2 | Entertainment Industry
The level of investment and the diversity of the activities in Immersive media market in the entertainment industry has
significantly increased over the past few years. In fact, it is one of few Industries to receive significant attention from
the developers and investors alike. The entertainment sector has seen the number of investments go up by 79% in
second half of 2017 compared to the same in 2016. Investments in the area of entertainment have been seen in the
fields of Hardware, production and enhancing the existing business capabilities.

                                                                                                                       27
Growth of Immersive Media - A Reality Check | Applications & Use Cases

Jaunt, a VR start-up has developed an end-to-end cinematic virtual-reality content-creation platform. It has raised
USD 100 Mn so far, led by Disney and other Hollywood players. Jaunt already has more than 200 pieces of contact in
its library, including sports and concert programming.

Similar investments are seen in Ryot, Felix and Paul studios, Within, Penrose studios, Baobab studios etc., among
others.
In India, the production of content has gained pace over the recent years, using VR, AR and 360° technologies.
Enlighten, Memesys, Meraki, Transcend and Trimensions etc., are some of the start-ups working in Entertainment
industry.
Immersive Media can play a large role in the overall improvement of experience and growth of the sector in the
following highlighted areas:

                                     Connectivity      Knowledge         Education      Exploration     Entertainment
    Entertainment

6.3.3 | Hotel and Travel Industry
Hotel and Travel Industry is witnessing increasing use of VR technologies as a new marketing tool. 360° video and
photos are used to provide the consumers the look and feel of the destinations across the world. VR technologies have
the power to drive growth in the travel industry by increasing people’s desire to travel.
In Sept 2015, Marriott International hotel chain has announced the launch of ‘VRoom Service’ created in collaboration
with Samsung Electronics. Guests are provided the option to order a Samsung Gear VR headset to experience VR
within their rooms. This is in addition to the ‘The Marriott Teleporter’ it has already introduced in 2014. A “4D VR”
system provides information to the five senses in addition to the 3D vision.
In addition to Marriott International, a range of other travel companies is using VR as a marketing tool. Spectra VR, The
Thought Studio, Tesseract, Trimensions, Meraki, and Transcend are some of the start-ups in India actively involved in
developing content for the Tourism and Hospitality Industry.
                Provider

                                                                            Immersive Media Offering
                                                                         Tajness, 360° view of Taj Hotels
                                                                              signature experiences

                                                                      Offers 360° view of Deltin Caravela,
                                                                            India’s only Casino Float

                                                                        The Teleporter, VR Room service

                                                                  Offers 360° view of Hilton’s Barbados resort

                                         Table 1: Immersive Media in Hospitality

                                                                                                                    28
Growth of Immersive Media - A Reality Check | Applications & Use Cases

Immersive Media can play a large role in the overall improvement of experience and growth of the sector in the
following highlighted areas:

                                      Connectivity      Knowledge         Education        Exploration     Entertainment
    Hotel & Travel

6.3.4 | Sports & Live Events
The first applications of AR in Sports was seen in late 1990’s, in American football, with the projected first-down line
and in Hockey, with the puck tracking. With the increased development of Immersive media technologies, Sports
Industry is also witnessing a significant adoption. The sport experience is being amplified in every possible field,
ranging from consuming content to training to recruiting athletes.
                Provider

                                                                            Immersive Media Offering
                                                                Live streaming of VR content of professional sports,
                                                                  such as NBA, NFL, International Champions Cup
                                                                        (ICC) football, NASCAR race, NHL etc

                                                               Integrating social       Fans can interact with each
                                                                  functionality             other through VoIP

                                     Table 2: Immersive Media in Sports & Live Events

                                      Connectivity      Knowledge         Education        Exploration     Entertainment
  Sports & Live Events

6.3.5 | Education
Education is expected to witness major transformation with the introduction of Immersive media technologies. By
engaging students with VR and AR technologies, in-depth learning experiences are made possible, which involves
including creative and interacting elements. Abstract and difficult concepts can be easily understood aided by 3D
rendering of the objects enabling visualization, thus providing deeper understanding of the concepts.
zSpace, Nearpod, Immersive VR Education and Universiv are some of the prominent Immersive media start-ups
working in the education space.
Immersive Media can play a large role in the overall improvement of experience and growth of the sector in the
following highlighted areas:

                                      Connectivity      Knowledge         Education        Exploration     Entertainment
       Education

                                                                                                                       29
Growth of Immersive Media - A Reality Check | Applications & Use Cases

6.3.6 | Retail
Immersive Media, specifically Augmented Reality, has led to the onset of a major change in the approach to
purchasing. Dubbed as the latest technological revolution in retail after mobile shopping, Immersive Media has
enabled potential buyers experience “Try-before-you-Buy” in their chosen environment, as well as the store itself. For
instance, the ability to place the heavy furniture such as a sofa set in the field of view using your iPad has been made
possible by Augmented Reality. This experience enables the end-user to see and appreciate how that large purchase
would look in their home. In turn, this has led to the reduction in returns and exchanges – a cost that most stores and
companies would bear in a highly competitive market.
Companies such as Target, Walmart, IKEA, Urban Ladder, and Zara are prominent users of Immersive Media with
innovative use cases.
Immersive Media can play a large role in the overall improvement of experience and growth of the sector in the
following highlighted areas:

                                      Connectivity      Knowledge       Education       Exploration      Entertainment
           Retail

6.3.7 | Automobile
Automobile manufacturers are constantly trying to place futuristic technologies in play to deliver a higher value and
enticing experiences to the customer across sales, driving & usage and service. Internal innovations to streamline
manufacturing, stock management and distribution are focus areas as well. In the recent years, automotive
manufacturers have begun to increase their usage of Immersive Media to enable an interactive and detailed sales
process.
For instance, Infiniti Cars uses a VR video-based approach to enable the customer to experience the car as if it were
driving, thereby filtering customers for test-drives and potentially converting higher sales. BMW is globally engaging in
AR to enable virtual shopping by allowing customers to customize the car variant while they are in the showroom to
select paint, wheels and other options on a stock configured car.
Manufacturers such as Volkswagen Group have used Augmented Reality in the form of a maintenance tool –
Volkswagen MARTA to help service their next-generation Volkswagen XL1. Volvo is utilizing Microsoft’s HoloLens to
enable production line workers to digitally view assembly instructions in real-time while working to put together parts
of the vehicle. Work instructions, associated technical drawings and even videos from the last person who completed
the procedure can be viewed in the AR glasses. This allows workers to keep their hands on their task with virtual
guidance, negating the need to walk over to a workstation to check anything and increasing outputs

                                      Connectivity      Knowledge       Education       Exploration      Entertainment
      Automobile

                                                                                                                      30
Growth of Immersive Media - A Reality Check | Emerging Technology Innovations

     7          Emerging Technology Innovations

              As Immersive Media grows, it will leverage
              technology innovations, a few key examples are
              explained below

                                      Camera & Image Capture
                                         Multi-Lens Camera
                                         3D Sensing Camera
                                         Smart Contact Lens

                                      Mapping & Environment
                                         Simultaneous Location & Mapping

                                      Display
                                         AMOLED- based Micro Display
                                         High Angular Resolution FOV

                                                                                31
Growth of Immersive Media - A Reality Check | Emerging Technology Innovations

           Select Technology
#1         Multi-Lens Camera
Usage of multi-lens cameras in the recent past, to create
depth-inclusive imagery and video, has been very high.
Recent advances in multi-lens cameras on Smartphones
have led to an even superior image quality or video quality
with depth characteristics. Virtual Reality, like Augmented
Reality, is expected to draw from Multi-Lens cameras in order
to create truly immersive experiences.

  Key Players

  Challenges

  Limited usage beyond recreation of images for AR applications
                                                                     Image 1: Apple iPhone X Rear Camera (Multi-Lens)
  Impact

  Majority of the devices       End-user experience             Positive influence AR uptake as well
  being powered with            will show significant           expected, especially when AR is
  Multi-lens cameras            improvement                     experienced through hand-held devices

           Select Technology
#2         3D Sensing Camera
Leveraging infrared technology to not only capture standard
images, but also sense the depth of the surroundings is the
prime application of the 3D Sensing Cameras. As compared
to the standard 3D Cameras offering on certain smart
devices, 3D Sensing Cameras have applications that range
beyond day-to-day photography applications, especially in the      Image 2: Depth Sensing Cameras on the Apple iPhone X
Augmented Reality and Virtual Reality space.

  Key Players

  Challenges

  Evolution of SDKs require devices to have 3D Sensing Cameras as a
  mandatory/default hardware; Limited Uptake of these premium devices

  Impact

  3D Sensing Cameras to enhance customer experience and delivery
  quality of apps through depth-based immersive experiences

                                                                                                                   32
Growth of Immersive Media - A Reality Check | Emerging Technology Innovations

           Select Technology
#3         Simultaneous Localization
           & Mapping (SLAM)
Simultaneous Localization and Mapping also called as SLAM, a technology
whereby a robot or a device, can use sensor data to construct or update a map
of an unknown environment, while simultaneously keeping track of its location
using complex computations and algorithms. This technology is enabled
by using depth sensing cameras, gyroscope and other modern sensors. Its
incorporation into Virtual and Augmented reality headsets helps the device         Image 3: Illustrative Render of SLAM
in establishing its location and its surrounding environment. It enables
the Immersive media developers to create more interactive and realistic
experiences and provide more accurate augmentation and depth information

  Key Players

  Challenges

Parameters of the camera such as focal length and                SLAM requires high-powered devices to efficiently
principle point are required to be calibrated, which requires    map and track the environment, which significantly
the usage of complicated and hence costly algorithms             increases the cost of devices it is used on

  Impact

SLAM has replaced the traditional marker-based technology tracking which
required pointing the camera at a defined image to see the AR experience

           Select Technology
#4         Smart Contact Lens
Smart Contact Lens are contact lens with embedded technology
to support a variety of applications, mainly around creating an
AR-environment, or detecting certain vital body parameters using
sensors. They have been on the embryonic stage of evolution with
key technology organizations expressing significant interest in them.
However, the real life application of the same would be to take pictures          Image 4: Illustrative Impression of
to enable the creation of an augmented reality environment using the                   Smart Contact Lenses
smartphone to which the lens connect wirelessly

  Key Players

  Challenges

  Concerns around invasion of privacy, especially around recording

  Impact

  High potential for usage to create         Exploring the potential of using Smart Lens in the MRO,
  augmented reality environments             Industrial and Media industries may result in a higher uptake

                                                                                                                        33
Growth of Immersive Media - A Reality Check | Emerging Technology Innovations

           Select Technology
#5         Amoled-based Micro Displays
Displays carrying AMOLED (Micro) technology may have existed for many
years. Major applications have been in military applications, and Head-
mounted displays in the commercial space have carried these as well.
Major drivers for the adoption of AMOLED-based Micro Displays over the
traditionally applied Liquid Crystal on Silicon (LCoS) has been the ability to
reduce size and weight.                                                                    Image 3: Micro Display

  Challenges

Lower color lifetime than LCoS,           Displays are challenging to be mass
making the technology unreliable,         produced, and innovation to reduce costs is
and potentially too expensive             not as fast as traditional display makers

  Impact

  Augmented reality (AR) glasses will be easier to              More room for other components to be built in,
  use because the size of light engine will be greatly          such as 3D-sensing camera, human interface
  improved by AMOLED-based micro displays                       (either touchpad or voice control) or larger battery

           Select Technology
#6         HIGH ANGULAR RESOLUTION AND
           WIDE FIELD OF VIEW DISPLAYS
VR, AR and MR head-mounted displays (HMDs) require higher definition,
high screen resolution and high aperture ratio to reduce the screen-door
effect. FOV of most VR, AR and MR headsets ranges from 20° to 40° due to
volume and weight restrictions. Improving AR visual interaction performance,
including the FOV, is expected to gain pace with development of screen
technologies such as Organic Light-Emitting Diode-on-silicon (OLEDos) and
micro projection technologies such as Lead Computing Optical Sight (LCOS)

  Challenges

 OLEDos and LCOS technologies are still in the development phase, the displays are
 expected to be more expensive compared to the available display technologies

  Impact

With the increased development and integration of these technologies onto the VR and AR devices,
it makes the devices more appealing and superior in terms of user experiencea

                                                                                                                       34
Growth of Immersive Media - A Reality Check | The India Story

     8           The India Story

               India is well positioned to leverage the
               opportunity presented by demand of Immersive
               Media globally, while also growing to become a
               large consumer of these very experiences

                         Immersive Media Market in India is estimated at USD 0.55 Bn. in 2018,

             1           but is expected to grow to USD ~6.5 Bn by 2022. Augmented Reality is
                         estimated to grow to USD 5.9 Bn and Virtual Reality is estimated to grow
                         to USD 0.5 Bn by 2022

            2            Real Estate, Media & Entertainment, Automotive and Retail are expected
                         to be the verticals with maximum adoption of Immersive Media

                         Indian AR-VR supply landscape comprises of significant large and small

            3            players in the areas of ‘Tech & Platform Development’, ‘App Development’
                         and ‘System Integration’ – both the domestic and the global Immersive
                         Media market provides a significant opportunity for these players to tap into

           4
                         Partnerships and collaborations are expected to be the key drivers of the
                         ecosystem in India, with majors such as Facebook, Snapchat, Niantic
                         forging relationships with Indian firms

            5
                         Challenges limiting the growth of Immersive Media in India include
                         Prohibitive Costs of Devices, Limited Content Availability and Low
                         Awareness about the Value Proposition of Immersive Media

                                                                                                         35
Growth of Immersive Media - A Reality Check | The India Story

8.1 | Immersive Media Growth in India
Immersive Media Market in India is estimated at USD 0.55 Bn. in 2018, but is expected to grow to USD ~6.5 Bn by
2022. Augmented Reality is estimated to grow to USD 5.9 Bn and Virtual Reality is estimated to grow to USD 0.5 Bn
by 2022.

Projected Augmented Reality Market Growth in India (2015-22)10

Augmented Reality Market Growth in India (USD Mn.)

                                                                                       %
                                                                                    91

                                                                                                                        5,968

                                                                                                        3,147

                   172%                                                                    1,671
                                         222                             868
           30             109                            445
         2015
          2.5             2016          2017
                                         2.5           2018E           2019F
                                                                        2.5              2020F         2021F
                                                                                                        2.5            2022F

Virtual Reality Market Growth in India (USD Mn.)

                                                                                      %
                                                                                    52

                                                                                                                        555

                                                                                                         373

                                                                                           249
                                                                         165
                   58%
                                                         109
                                          69
           28              44
         2015
          2.5             2016          2017
                                         2.5           2018E           2019F
                                                                        2.5              2020F         2021F
                                                                                                        2.5            2022F
                                           x% Compound Annual Growth Rate
       Chart 9: Market Growth for Augmented Reality & Virtual Reality in India (Incl. Consumer & Enterprise User spending)

8.2 | Demand and Supply Landscape
8.2.1 | Demand Landscape
The needs of the customer have changed significantly. Enterprises are seeking differentiation by providing a ‘wow’
experience to the consumer, while continuing to stay focused on profitability. In a high-competition environment
bringing down costs of customer acquisition and reduction of overheads in terms of real-estate space to sell goods
and services have led to the incremental adoption of Augmented Reality and Virtual Reality. Similar rationale has led
to the upwards drive of the use of AR and VR in the Maintenance, Repair and Overhaul domain, as well as learning &
development for businesses.

10 | Deloitte Analysis, BIS Research                                                                                            36
Growth of Immersive Media - A Reality Check | The India Story

                                                                                       Applicability Potential

                                                                                                                                 Entertainment
                                                                        Connectivity

                                                                                                                  Exploration
                                                                                          Knowledge

                                                                                                      Education
                                                                                                                                                 Propensity
                                                                                                                                                  to Deploy
     Industry                    Illustrative Use Cases                                                                                          Immersive
                                                                                                                                                    Media
The needs of the customer have changed significantly. Enterprises are seeking differentiation by providing a ‘wow’
experience to the consumer, while continuing to stay focused on profitability. In a high-competition environment
    Automobile                  Manufacturing    Operations
bringing down costs of customer   acquisition and  reduction of overheads in terms of real-estate space to sell goods
and services have led to the incremental adoption of Augmented Reality and Virtual Reality. Similar rationale has led
                                   Carand
to the upwards drive of the use of AR  Sales
                                           VR &in Service
                                                  the Maintenance, Repair and Overhaul domain, as well as learning &
development for businesses.
       BFSI           Customer Experience (Electronic Banking)

                          Learning, Training & Development

     Defense          HUD in Military Aircraft, Vehicles and Boats

                    Special Forces Gear & Training across AR & VR

    Education             Learning through Live-like systems

                       Learning/Training in safe environments

     Gaming            Mobile Hand-held Gaming using AR & VR

                        Console & Computer Gaming using VR

   Healthcare               Learning & Training/Education

                               Surgery, Patient Care etc.

  Hospitality &         Customer Experience & Revenue Uplift
     Travel
                          Learning, Training & Development

   Logistics &            Asset Tracking/Supervisory Control
  Supply Chain
                              Customer Service/Support

    Media &               Advertising & Revenue Generation
 Entertainment
                                  Media Consumption

    Oil & Gas                        Manufacturing

                                Training & Development

   Real Estate
                      Showcase of property/real-estate product

      Retail              Shopping Experience Enhancement

                              Product Launches/Support

     Telecom            Telecom/TowerCo Setup/Maintenance

                                Sales/Customer Service
Indian companies across the Automobile, Real Estate, Retail, e-Commerce and                                                                 Maturity

other similar sectors have been experimenting and in recent times adopting the
use of Augmented Reality to match their customers’ experience requirements.                                                Low                         High

                                                                                                                                                        37
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